Spadea Lignana's CORE program for franchisors is a cost-effective and practical solution for the ongoing legal needs of franchisors, including but not limited to, FDD updates, state registrations and the creation of a cloud-based system to effectively and efficiently manage FDD Disclosures and Franchise Agreement execution for a flat fee each month based on the number of states you are registered in and the size of your system.
Legal representation for franchisors to cover the “core” legal requirements of statutory compliance and enforceable documentation. The cornerstone of the program is an “ounce of prevention” mentality to prevent small problems from becoming big (and expensive) problems. Our goal, as your attorney, is to act as your trusted advisor and to keep your legal house in order. We will build a “virtual contract vault” that will house all signed franchise agreements, state registrations, legal correspondence, trademarks, etc. In addition to building and maintaining the “virtual contract vault” we will setup processes to maintain compliance, ensure properly executed franchise agreements and cross the t’s and dot the i’s on your legal contracts. A franchise system is a series of contracts promising future cash flow. The strength of those contracts is directly proportional to the strength and consistency of each and every contract that is executed. When a crisis arises, it is often too late to fix a latent defect in your legal files. Let’s fix them now, while the sun is shining.
The below services (the “Included Items”) are covered under a monthly fee (the “Monthly Fee”) that is scaled based on the number of active franchisees in your system and the number of active states your franchise is registered in:
1. Create a cloud based system for FDD Disclosures through DocuSign®.
2. File, amend, negotiate and manage the state registrations as required by multiple states upon the request of the franchisor.
3. Annual FDD updates.
4. Prepare, negotiate and advise on requested Franchise Agreement Addendums from prospective franchisees.
5. Electronically prepare, send, review and file all new Franchise Agreements through DocuSign®.
6. Up to two (2) hours of legal time per “incident” for guidance on franchisee defaults and issues with non-compliant franchisees.
7. Up to two (2) hours of legal time per franchisee renewal, transfer and termination to advise and prepare the necessary documentation.
8. General questions on the FDD, the Franchise Agreement and franchise law compliance.
9. Franchise development marketing material approval and questions, such as the franchise development website and any brochures, presentations, emails blasts, etc.
The below services are excluded from the Monthly Fee and will be billed hourly:
1. Dispute resolutions per incident beyond the initial two (2) hours covered under the Monthly Fee.
2. Renewals, transfers and terminations per franchisee beyond the initial two (2) hours covered under the Monthly Fee.
3. Trademark filings.
4. Cease and Desist letters for any trademark infringements.
5. General contract negotiations for vendors, third parties, private equity transactions, financing, etc.
6. Employment agreements and advice on employment issues for franchisor staff.
7. Corporate/Franchisor acquisitions or re-sales of locations.
8. Corporate store lease reviews.
9. Franchisee lease reviews to ensure compliance with franchisees obligations to the Client.
10. All other general legal advice not covered by the Monthly Fee.
Below is a sample state registration map, which is continuously updated as part of CORE.
We set up a cloud-based system to ensure proper FDD is disclosed and franchise agreements are properly executed.
Are you interested in our flat fee franchise legal services? Contact us on our website or call us at 215.525.1165 to request more information.